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11-Year Summary of Consolidated Business Performance Indicators Financial Index 2003 2004 2005 2006 2007 For the Year: Millions of yen Net sales Next page 1 ¥ 62,036 ¥ 52,668 ¥ 65,895 ¥ 70,253 ¥ 74,542 Operating income Next page 2 6,680 1,402 7,752 6,580 9,602 Net income (loss) Next page 4 (19,598) (9,158) 3,622 6,941 5,852 Depreciation & amortization 2,202 2,081 2,101 1,936 2,774 Capital expenditures 2,289 4,678 1,665 1,600 4,495 R&D expenses 1,151 1,124 1,323 1,864 1,828 At Year-End: Millions of yen Total assets ¥ 106,648 ¥ 93,096 ¥ 106,361 ¥ 98,457 ¥ 91,478 Net assets 42,888 31,854 32,491 39,464 45,144 Net cash (14,894) (16,957) (12,948) (678) 9,200 Cash Flows: Millions of yen Cash flows from operating activities ¥ 3,635 ¥ 5,577 ¥ 7,977 ¥ 13,921 ¥ 16,063 Cash flows from investing activities (2,329) (5,011) (1,099) (1,779) (6,715) Cash flows from financing activities (2,000) (395) 6,251 (18,259) (15,206) Cash and cash equivalents at end of year 33,444 32,131 45,538 40,652 35,020 Per Share Data: Yen Net income (loss) per share Next page 5 ¥ (338.01) ¥ (160.91) ¥ 63.37 ¥ 125.19 ¥ 107.52 Cash dividends applicable to the year per share Next page 6 20.00 20.00 20.00 20.00 30.00 Net assets per share 753.47 559.66 589.99 716.91 799.35 Financial Index: % Operating margin Next page 3 10.8 2.7 11.7 9.4 12.9 ROE Next page 8 — — 11.3 19.3 13.8 ROA — — 3.6 6.8 6.2 Net worth ratio 40.2 34.2 30.5 40.1 49.3 Debt-equity ratio 148.8 192.4 227.9 149.4 102.8 Foreign investors 16.85 16.59 14.79 23.35 32.60 Consumer Business Net Sales: Billions of yen Consumer Online Games business Next page 7 ¥ 48.0¥ 33.9 ¥ 39.9¥ 42.7 ¥ 43.8 Number of Home Video Games Sold: Thousands Total number of units 16,300 11,600 13,500 13,400 12,200 Lost Planet Mega Man Resident Evil 4 Resident Evil 4 Devil May Cry 2 Extreme Sales of major titles 1,400 Battle Network 4 950 (GC) 1,230 (PS2) 1,810 1,370 Condition Onimusha Resident Evil 0 Onimusha 3 Devil May Cry 3 Dead Rising 1,130 630 1,100 DAWN of DREAMS 640 1,220 Mega Man Resident Evil Resident Evil Monster Hunter Monster Hunter Battle Network 3 850 Outbreak 430 Outbreak 820 Freedom 610 Freedom 2 1,220 a Net sales (Millions of yen) b Operating income (Millions of yen) 12,318 2012 82,065 2012 Decrease in net gross profit (375) Digital Contents 3,826 Decrease in advertising expenses 820 Increase in promotion expenses 539 (785) Arcade Operations Selling, Increase in salaries and bonuses 441 general and 9,120 administrative Decrease in provision for accrued bonuses (106) Amusement Equipments expenses up 1,792 Decrease in commissions 288 Other Businesses (151) Decrease in research and development expenses (254) up 12,010 Decrease in other selling, general and administrative expenses 82 94,075 down 2,167 2013 from the previous 2013 10,151 from the previous fiscal year fiscal year 7 CAPCOM ANNUAL REPORT 2013 11-Year Summary of Consolidated Financial Indicators See page 63 Highlights CAPCOM CO., LTD. AND ITS CONSOLIDATED SUBSIDIARIES. YEARS ENDED MARCH 31 2008 2009 2010 2011 2012 2013 2013 Millions of yen Thousands of U.S. dollars ¥ 83,097 ¥ 91,878 ¥ 66,837 ¥ 97,716 ¥ 82,065 ¥ 94,075 a $1,000,709 13,121 14,618 5,587 14,295 12,318 10,151 b 107,993 7,807 8,063 2,167 7,750 6,723 2,973 31,632 3,393 4,143 3,368 3,315 3,123 3,406 36,235 4,503 2,906 2,205 2,758 4,153 8,724 92,811 2,972 2,329 2,125 2,924 2,236 1,982 21,086 Millions of yen Thousands of U.S. dollars ¥ 93,606 ¥ 106,210 ¥ 86,621 ¥ 90,408 ¥ 98,247 ¥ 104,365 $1,110,266 53,660 59,349 53,956 58,007 59,352 62,828 668,386 13,061 7,378 12,299 27,655 11,348 14,327 152,415 Millions of yen Thousands of U.S. dollars ¥ 7,452 ¥ (551) ¥ 14,320 ¥ 22,392 ¥ (7,672) ¥ 6,647 $ 70,714 (3,374) (2,715) (1,618) (2,046) (4,794) (1,375) c (14,628) (2,448) (342) (10,747) (12,919) 587 1,162 d 12,366 32,763 28,611 29,815 35,011 22,287 31,522 335,345 Yen U.S. dollars ¥ 132.90 ¥ 130.98 ¥ 35.71 ¥ 131.18 ¥ 116.10 ¥ 51.64 $ 0.55 30.00 35.00 35.00 40.00 40.00 40.00 0.43 881.31 961.38 913.18 981.76 1,030.70 1,091.08 11.61 % 459 15.8 15.9 8.4 14.6 15.0 10.8 15.8 14.3 3.8 13.8 11.5 4.9 8.4 8.1 2.3 8.8 7.1 2.9 57.3 55.9 62.3 64.2 60.4 60.2 74.4 79.0 60.5 55.9 65.5 66.1 27.72 33.73 24.22 22.17 27.05 32.37 Billions of yen ¥ 51.6 ¥ 60.2 ¥ 38.7 ¥ 63.9 ¥ 46.9 ¥ 45.9 Thousands 15,600 17,300 12,500 20,500 15,700 14,000 Monster Hunter Resident Evil: Monster Hunter Freedom Unite Operation Devil May Cry 4 2,320 Resident Evil 5 4,400 1,350 Freedom 3 4,600 1,700 Resident Evil 6 4,900 (Best Price included) Raccoon City Resident Evil 4 Monster Hunter Monster Hunter Dragon's Street Fighter IV Dead Rising 2 Wii edition 1,300 2,500 Tri 1,150 2,200 3 (Tri) G 1,600 Dogma 1,300 Resident Evil: Monster Hunter MARVEL VS. Street Fighter DmC Resident Evil 5 The Umbrella 1,060 Freedom Unite 2,200 950 CAPCOM 3 Fate 2,000 X Tekken 1,400 Devil May Cry 1,150 Chronicles (Best Price included) of Two Worlds c Cash Flows from Investing Activities (Millions of yen) d Cash Flows from Financing Activities (Millions of yen) 2,499 Proceeds from withdrawal of time deposits 4,290 Net increase in short - term borrowings (1,578) Payment for acquisition of intangible fixed assets (2,298) Dividends paid by parent company (3,086) Payment for acquisition of tangible fixed assets (830) Others 790 Others down 1,375 up 1,162 CAPCOM ANNUAL REPORT 2013 8 Commentary on Main Financial Indices 1 Net sales 2 Operating income 14.6% UP 94,075 17.6% DOWN 10,151 120,000 million yen 20,000 million yen (Millions of yen) Digital Contents Arcade Operations (Millions of yen) Digital Contents Arcade Operations Amusementt Other BusinessesBusine 97,716 Amusement Equipments Other Businesses Equipments 91,878 14,618 90,000 83,097 82,065 15,000 14,295 74,542 13,121 12,318 70,253 66,837 62,036 65,895 60,000 52,668 10,000 9,602 7,752 6,680 6,580 5,587 30,000 5,000 1,402 0 0 2003 200400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 200808 2009 2010 2011 2012 2013 (YEARS ENDED MARCH 31) (YEARS ENDED MARCH 31) Structural reforms enacted in the fiscal years that ended in March 2003 and Structural reforms have enabled Capcom to sustain consistent growth in 2004 set the stage for stable growth in sales starting in the fiscal year ended operating income. Moreover, the contribution to net sales occurred two March 2005. This was mainly due to the creation of an efficient development years later in the fiscal year ended March 2007 because it took two years to structure able to launch popular, highly profitable home video games put together a highly profitable lineup after restructuring. However, in each year. In the fiscal year ended March 2013, strong sales of Pachislo recent years, rapid changes in the market, including the expansion of mobile machines developed in-house for the Amusement Equipments business content and DLC, as well as the impact of the transitional period before and growth of mobile and other content in the online business resulted in the sales of next-generation game consoles has increased the volatility of a 14.6% increase in net sales from the previous year. our earnings. In the fiscal year under review, operating income decreased 17.6% as a result of major titles failing to achieve their sales targets or being postponed. 3 Operating margin 4 Net income (loss) 2,973 4.2 points DOWN 10.8% 55.8% DOWN 20 30,000 million yen (%) (Millions of yen) 15.8 15.9 14.6 15.0 15 12.9 15,000 10.8 11.7 6,941 7,807 8,063 7,750 6,723 3,622 5,852 9.4 8.4 2,167 10 0 2.7 (9,158) 5 –15,000 (19,598) 0 –30,000 2003 2004 2005 2006 2007 2008 2009 20100 2011 2012 2013 2003 2004 2005 2006 2007 2008 2009 2010 20111 2012 2013 (YEARS ENDED MARCH 31) (YEARS ENDED MARCH 31) Operating margin depends primarily on profitability of the Digital Contents In the fiscal years that ended March 2003 and 2004, Capcom posted large business, which accounts for about 70% of net sales.